Investors irked with Nepse’s delay in fixing errors
KATHMANDU, Nov 13: The online trading system of Nepal Stock Exchange (Nepse) continued to face technical glitches on the third trading day since its launch, drawing criticisms from investors.
Though the Nepse Automated Online Trading System (NOTS) was inaugurated on November 7 by Minister for Finance Yuba Raj Khatiwada to replace the Computerized Trading System (CTS), brokerage firms have been encountering several technical problems in the new state-of-the-art trading system.
Online share-trading system to go live in two months
While stock brokers faced several problems while placing orders, investors also faced technical glitches. Some of the technical problems that investors and brokerage cited include error in the floor sheet of trading, lack of proper display of market depth and inaccurate display of trading data in real time, among others.
“It seems that there is a serious problem in the system integration. The new system has failed to function properly,” Ambika Prasad Paudel, the president of Nepal Investors Forum, told Republica. “This shows gross negligence on the part of Nepse and the system developer. Nor has the brokerage firms been provided with necessary orientation to use the new system.”
The malfunctioning of the system has been reflected in the daily turnover of the stock market. The daily turnover fell to Rs 133.82 million on Monday from the average daily turnover of around Rs 220 million to Rs 250 million before the new system came into full-fledged implementation.
Brokers also share similar frustration over using the new system. “This new system is riddled with flaws. They need to be resolved immediately. However, some of the problems reported also have to do with the lack of idea on using the new system,” said a stock broker, requesting anonymity.
However, Nepse officials defend the new system. Issuing a statement amid wide-spread criticisms over the technical glitches in the new system, Nepse said that it has felt that the new system would gradually gain stability.
Though the stock exchange has addressed some of the problems faced by investors and brokers, it has not admitted that the technical glitches in the new system have caused turmoil in the market.
Following the implementation of NOTS, which was hailed as a new milestone in the country’s journey to modernize the secondary market, investors will be able to execute their orders of buying and selling securities through their Internet-connected computer or smart devices. This new system is expected to end the compulsion for investors to visit brokerage office for buying or selling securities.
With this online trading system, investors will have an access to various features along with online entry of trading orders.
